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Without commenting on the pricing model for the DAMO code, I will say the corporate strategy for DAMO Isn't to provide a replacement for the Notes client for customers who 'hate the Notes client' so much as it is to provide a migration path for customers moving off of the Exchange server and Outlook client to Domino and Notes.
DAMO lets customers move the back end to Domino while preserving their existing end user experience. Once the back end has been moved from Exchange to Domino, IBM is in a good position to push the benefits of moving the end users to Notes (access to Notes applications platform, Symphony, etc). Since DAMO supports a mixed environment, there's also the option of migrating portions of the user base to Notes and leaving others (<cough> executives) on Outlook.
Feedback response number TRIH7JTNYT created by ~Naomi Bubhipilitnivu on 09/25/2008